By Chris Becker With no economic events overnight, risk markets hinged on the unhinged tweets from Trump while the UK tried to de-escalate tensions with Iran over its seized oil tanker. Tech stocks had a very positive night while industrials on Wall Street were subdued as disappointing earnings keep rolling in. Currency markets were quiet
Not a good start to the week here in Asia with a sea of red on stock markets in response to the weekend seizure of a British oil tanker by Iranian forces, but also the walkback of the Fed easing more than expected at this month’s FOMC meeting. Chinese stocks sold off the most with
Via Deutsche: Deutsche Bank notes that whereas discretionary investors have been cutting equity positioning as growth has slowed… … systematic strategy allocations – i.e., quants (sometimes also called “robots”) and the like – have been marching higher. To evaluate how various investor classes have been approaching markets, Thatte divides his suite of equity positioning and
By Chris Becker The possible revocation of the Fed put combined with the Iranian seizing of a British tanker saw risk sentiment reverse again on Wall Street following a positive close here in Asia. The amount of easing priced in at the July Fed meeting has dropped to an average of only 30 basis points
By Chris Becker Here comes the Fed with more punch to revive this boring party! The NY chief of the Federal Reserve, John Williams, gave a big boost to risk markets overnight by goosing the easing question, sending stocks higher and slamming the USD down against all the undollars. Gold has broken out to a
Stocks in Asia are again under pressure following the poor lead from Wall Street, but also from a slump in trade figures in Japan, sending Japanese stocks falling as Yen gained against USD. The Aussie dollar has lifted inexorably after a poor unemployment print, dragging the Kiwi along for the ride. The Shanghai Composite gapped
Via BofAML: The BofAML July Global Fund Manager Survey The nut: dovish Fed & trade truce have caused investors to reduce cash and add risk; but expectations of EPS recession & debt deflation still dominate FMS investor sentiment and the summer “pain trade” remains up in stocks & yields; note since the uber-bearish June FMS,
By Chris Becker The US earnings season is putting several headwinds in the way of an ever-rising stock market with US bourses falling overnight in disappointment. European markets fell as well as the prospect of a hard Brexit becomes more likely, with Treasury yields falling again in response. Looking at the action in Asia yesterday
Stocks in Asia are flat again with only the ASX200 putting in a positive performance as concerns over Trump’s mishandling of the trade war with China rise again. The USD is relatively calm although Pound Sterling remains under pressure with S&P futures flat before tonights open. The Shanghai Composite has been unable to get out
By Chris Becker The US earnings season has had a hiccup as Trump puts his foot in his mouth again with a threat of more tariffs on China, while a missive to start negotiating with the Iranians has seen the oil price drop over 2% as the USD lifted. The latest US retail sales number
Stocks in Asia are mixed again with the return of Japanese stocks as the USD gains strength against most of the major currencies, particularly Yen, although Kiwi keeps on as its CPI print comes in as expected. The Shanghai Composite continues its slow start to the week, falling 0.2% going into the close, currently at 2934
By Chris Becker The latest US earnings season has started, and while the headline Dow is up, the broader S&P500 is treading water as US interest rates continue to fall. The USD is up against most of the majors, with oil prices abating due to lesser concern about the hurricane in the Gulf of Mexico affecting
Stocks in Asia are mixed with the lack of trading in Japan because of yet another holiday but also due to the latest Chinese GDP print which showed a slowing trend, but an economy still powering ahead with industrial production and retail sales figures much higher than expected. Bitcoin is having a tough time as
Via Zero Hedge: What’s driving the equity rally? According to Deutsche Bank, despite the confusion, the rally has been in line with what the bank’s demand-supply framework has predicted: large sustained buybacks and rising systematic strategies positioning have offset fund outflows, even as risks are rising on the horizon. Here is Thatte’s explanation: Our simple framework combining,
By Chris Becker Friday night saw US shares advance even further as the prospect of the Fed cutting rates firmed, while the USD lost ground against all the undollars except gold. US Treasury yields rose to a one month high but still unsettled with a much firmer than expected PPI print backing up the recent
Stocks in Asia have generally pushed higher following the record highs on Wall Street overnight with the USD still selling off against the undollars as traders readjust to the Fed’s dovish stance. Local stocks are the exception with the fall in iron ore price taking down Rio Tinto and BHP, while Bitcoin is struggling as
By Chris Becker A big spike in US interest rates overnight still couldn’t hold back the Dow making a new record high, although the broader S&P500 failed to get over 3000 points again. European stocks continued to wobble while the USD barely moved following the latest core inflation data. Looking at the action in Asia
Stocks in Asia have pushed higher with the USD sold off against the undollars as traders readjust to the Fed’s dovish stance following Fed Chair Powell’s testimony to Congress last night. Gold is soaring above $1400USD per ounce again while the Australian dollar is having another push to get back above 70 US cents. The
By Chris Becker It was an easy night for short USD traders as Fed chief Powell reiterated the central banks dovish stance, sending interest rates and King Dollar down and lifting stock markets and commodities. Oil spiked higher on a greater than expected inventory drawdown while base metals also rallied alongside gold, although Bitcoin took
Stocks in Asia remain unsettled as traders await Fed Chair Powell’s testimony to Congress tonight, with some optimism sneaking through particularly locally as the Australian dollar goes lower again. Currency markets are also mixed, with the Euro steady while Pound Sterling is selling off going into the City open, while the Aussie and Kiwi remain under
By Chris Becker Overnight markets were effectively sidelined by traders waiting for Fed Chairman Powell’s testimony with European stocks retreating while US stocks put in some minor gains, led by tech issues on the NASDAQ. Interest rates nudged higher with the 10 year Treasury up to 2.07% as the chance of a rate cut from
Stocks in Asia are still unsettled although Japanese stocks are holding up due to a much weaker Yen. While most major currencies are steady, Bitcoin continues to soar and gold is deflating. The Shanghai Composite continues to fall, down over 0.5% to be at 2917 points going into the close. The Hang Seng Index is down
By Chris Becker US stocks gapped down on the open and remained in the red all session in response to the weak session in Asia, with European bourses barely keeping afloat as well. All because the punchbowl might be filled only halfway by the Fed instead of overflowing, as US Treasuries remained slightly above the
Hope is not a good enough driver for risk markets, with Friday nights’ US unemployment print dashing expectations of sooner and larger rate cuts from the Federal Reserve. After a sharp fall on Friday, undollar assets have come back slightly in Asian trade with gold back above $1400USD per ounce while Yen was bought on
By Chris Becker The biggest event on the economic calendar – US unemployment or non-farm payrolls (NFP) – on Friday night shook up risk markets as the strong print markedly reduced expectations of further interest rate cuts by the Federal Reserve. This saw the USD soar, Treasury yields also increased, with gold smashed back below
The Shanghai Composite is setting the mood here in Asia by treading water around a tight range, although it briefly dipped below the 3000 point barrier earlier in the session it looks sit to finish a very dull week indeed. The Hang Seng Index is also putting in yet another scratch session, little changed at 28827 points,
Cross posted from The Conversation by Jason Pallant Lecturer of Marketing, Swinburne University of Technology The Woolworths Group proclaims it celebrates “family-friendly values”. Within its supermarkets the company has sought to demonstrate this commitment. Woolies gives out free fruit to kids, for example, and no longer gives out plastic bags. Its goal, the group states, is to
By Chris Becker With US markets closed for a holiday, other risk assets still pushed higher in their absence with German bond yields now at a record low and matching the ECBs negative deposit rate. Currency markets were very stable as the lack of volume impacted movements while traders await tonight’s NFP print. Looking at
Share markets in Asia were mixed despite a very strong from overnight markets as traders weigh up the closed US session and the following NFP print on Friday night. The Australian dollar was the biggest mover today while other pairs are marking time as well, with the undollars Bitcoin and gold remaining strong against King
By Chris Becker A much firmer response from the risk on crowd overnight as US stocks pushed to new highs while US interest rates plumbed new lows. Sentiment was helped on bond markets at least by nominations to the ECB and Fed, with Christine Lagarde to become the next ECB president. Treasury yields dropped even
